EV vs Gas Car Cost Calculator
By Baolin Gong, AFP · Founder, USFinCalc · Reviewed against primary sources (IRS, SSA, state revenue authorities).
Compare the true 5-year cost of owning an electric vehicle — like the Tesla Model 3, Hyundai Ioniq 5, or Chevy Equinox EV — against a comparable gas car. This calculator includes purchase price, fuel, maintenance, insurance, the $7,500 federal EV tax credit, and annual fuel-price escalation.
Cumulative cost over 5 years
Total ownership cost year by year. When the EV line (green) is below the gas line (amber), the EV is cheaper to own at that point.
How this comparison works
This calculator adds up every major ownership cost over 5 years: purchase price (minus tax credits), fuel, scheduled maintenance, and the insurance premium difference between an EV and a comparable gas vehicle.
What drives the difference
- Fuel cost gap
- Electricity is typically 60–70% cheaper per mile than gasoline
- Maintenance
- No oil changes, fewer brake jobs, no transmission service — EVs save $400–$800/year
- Tax credits
- The $7,500 federal credit closes most of the purchase-price gap on day one
- Insurance
- EV premiums are $100–$300/year higher due to repair complexity
Popular EV models for comparison
The default values approximate a Tesla Model 3 or Chevy Equinox EV vs. a mid-size gas sedan. For trucks, try the Ford F-150 Lightning (2.1 mi/kWh, $55,000) against a gas F-150 (20 MPG, $48,000). The Hyundai Ioniq 5 and Tesla Model Y fall between sedans and trucks in efficiency.
Worked example: how mileage changes the 5-year math
Because an EV's advantage comes mainly from cheaper fuel, the more you drive, the faster it pulls ahead. To show this, we held every other input at the calculator's defaults — a $35,000 EV (after the full $7,500 federal credit, a $27,500 net price) at 3.5 mi/kWh and $0.16/kWh electricity, versus a $32,000 gas car at 28 MPG and $3.50/gallon, with EV maintenance $600/yr lower and insurance $200/yr higher — and varied only annual mileage.
| Annual miles | EV 5-yr cost | Gas 5-yr cost | EV saves |
|---|---|---|---|
| 8,000 | $33,442 | $43,309 | $9,868 |
| 12,000 (default) | $34,412 | $45,964 | $11,551 |
| 15,000 | $35,141 | $47,955 | $12,814 |
| 20,000 | $36,354 | $51,273 | $14,919 |
With the full $7,500 credit applied, the EV starts cheaper than the gas car on total cost and stays ahead in every mileage scenario — break-even lands in year one. A 20,000-mile-a-year driver saves roughly 50% more over five years than an 8,000-mile driver, purely from the widening fuel gap. The credit matters enormously here: remove it, and the EV starts $7,500 behind, pushing break-even out by two to three years. Enter your actual purchase prices and confirm whether the vehicle you want qualifies for the credit before trusting the headline number.
Common mistakes to avoid
Total-cost-of-ownership comparisons go wrong in predictable ways. Watch for these.
- Assuming every EV gets the $7,500 credit. The federal credit has price caps, income limits, and North American assembly and battery-sourcing rules. Many models qualify for only $3,750 or nothing. Check the current eligibility list before assuming the full amount.
- Comparing sticker prices instead of total cost. An EV can cost more upfront yet less over five years once fuel and maintenance are included. The purchase price alone is misleading.
- Using the national average electricity rate. Home charging at $0.16/kWh is very different from relying on public DC fast charging at $0.40–$0.60/kWh, which can erase much of the fuel advantage. Model the way you'll actually charge.
- Ignoring the resale and battery question. This five-year comparison stops before major battery concerns typically arise, but resale values differ by model — a factor worth researching separately for the specific cars you're weighing.
- Forgetting higher EV insurance. EVs often cost more to insure because of pricier repairs. This calculator includes a $200/year default difference; get real quotes for both vehicles.
Key terms explained
- mi/kWh (miles per kilowatt-hour)
- An EV's efficiency measure — how far it travels on one kWh of electricity. A typical sedan does 3.5–4 mi/kWh; trucks around 2 mi/kWh.
- Federal EV tax credit
- Up to $7,500 for qualifying new EVs, subject to price caps, buyer income limits, and North American assembly and battery-sourcing rules.
- Total cost of ownership (TCO)
- The full five-year cost of a vehicle — purchase price, fuel, maintenance, and insurance combined — not just the sticker price.
- Cost per mile
- Total ownership cost divided by miles driven, letting you compare an EV and a gas car on equal footing regardless of how much you drive.
- Break-even year
- The year in which the EV's cumulative total cost drops below the gas car's, after which the EV stays cheaper.
Frequently asked questions
Is an electric car cheaper to own than a gas car?
In most cases over 5 years, yes. Lower fuel and maintenance costs plus the federal tax credit typically offset a higher sticker price within 2–3 years.
How much does it cost to charge an EV vs. filling up with gas?
At national average rates, an EV costs about $0.04–$0.05 per mile in electricity. A 28 MPG gas car at $3.50/gallon costs about $0.13 per mile — roughly 3x more.
What is the federal EV tax credit for 2026?
Up to $7,500 for qualifying new EVs under the Inflation Reduction Act. Income limits apply ($150K single, $300K joint) and the vehicle MSRP must be under $55K for sedans or $80K for SUVs/trucks.
Are EV maintenance costs really lower?
Yes. EVs skip oil changes, have fewer brake replacements thanks to regenerative braking, and have no transmission. Average annual maintenance is $600–$800 vs. $1,000–$1,400 for gas vehicles.
Does this include depreciation?
No. Depreciation varies widely by make, model, and market conditions. This calculator focuses on out-of-pocket operating costs where EVs have a structural advantage.